Crypto World
Solana president Lily Liu’s bold vision for Solana
In a fireside chat at Consensus Hong Kong 2026, Solana Foundation President Lily Liu unpacked her “Internet Capital Markets” vision with moderator Michael Lau, Chairman of Consensus.
Liu asserted that blockchains’ true strength lies in finance and markets, not utopian general-purpose tech. Liu envisioned tokenizing all world assets on-chain, enabling seamless access from everyday payments to high-frequency trading and creating a unified, global marketplace for capital formation.
Liu traced crypto’s capital-raising evolution from early ICOs to rapid modern raises, arguing this extensible primitive should empower non-crypto projects and companies worldwide. Liu stressed democratising talent and capital formation, which is rare in most markets, as crypto’s core societal impact.
Highlighting Asia’s pivotal role, Liu called it crypto’s “core market,” not frontier, given its Bitcoin origins and vast user/talent base. Liu championed revenue-focused metrics over governance tokens, insisting real network and app usage must drive sustainable value accrual to holders for long-term sovereignty and opportunity.
The tokenized commodities market has risen 53% in less than six weeks to over $6.1 billion, making it the fastest-growing vertical in the real-world asset tokenization market as more gold moves onchain.
The tokenized commodities market was valued at just over $4 billion at the start of the year, meaning around $2 billion has been added to the market’s value since Jan. 1, according to data from crypto analytics platform Token Terminal.
Data shows the tokenized commodities market is dominated by gold products.
Stablecoin issuer Tether’s gold-backed token, Tether Gold (XAUt), has been the biggest contributor to the rise, with its market cap increasing 51.6% in the past month to $3.6 billion, while the Paxos-listed PAX Gold (PAXG) has increased 33.2% to $2.3 billion over the same timeframe.
Tokenized commodities have now risen 360% year-on-year, with the increase since the start of 2026 outpacing growth in the tokenized stocks and tokenized funds markets at 42% and 3.6%, respectively.
It also puts the tokenized commodities market at just over one-third the size of the $17.2 billion tokenized funds market. It’s also much larger than tokenized stocks, which are valued at $538 million.
Tether expanded its tokenized commodities strategy on Thursday by acquiring a $150 million stake in precious metals platform Gold.com, in an effort to broaden access to tokenized gold.
Tether said its XAUt token would be integrated into Gold.com’s platform and that it is exploring options to allow customers to purchase physical gold with USDt (USDT) stablecoin.
Gold picks up the pace as Bitcoin stuck below $70,000
The rise in tokenized gold comes as gold’s spot price rallied more than 80% over the past year to set a new all-time high of $5,600 on Jan. 29.
A minor pullback saw gold retrace to the $4,700 mark earlier this month, but it has since risen back up to $5,050 at the time of writing.
Related: Do Super Bowl ads predict a bubble? Dot-coms, crypto and now AI
Meanwhile, Bitcoin (BTC) and the crypto market have been in a slump since Oct. 10, when a crypto market crash triggered $19 billion in liquidations.
Bitcoin fell 52.4% from its early October high of $126,080 to about $60,000 on Friday but has since rebounded to $69,050, CoinGecko data shows.
Bitcoin’s fall amid a rise in traditional safe-haven assets has led some industry commentators, like Strike CEO Jack Mallers, to speculate that Bitcoin is still treated like a software stock despite having hard money characteristics.
Crypto asset manager Grayscale similarly said Bitcoin’s long-standing narrative as “digital gold” has been put to the test, stating that its recent price action increasingly resembles that of a high-risk growth asset rather than a traditional safe-haven.
Magazine: Big questions: Should you sell your Bitcoin for nickels for a 43% profit?
Since August 2025, XRP holders have increasingly spent their coins, adding to the selling pressure that has flipped the asset’s on-chain profitability negative.
The past six months have been primarily depressing for XRP, the native cryptocurrency of the Ripple Network. Now, the asset appears to be flashing a capitulation signal as holders realize major losses amid panic selling.
Data from Glassnode shows that on-chain profitability for the digital asset has flipped negative, with the Spent Output Profit Ratio (SOPR) falling from 1.16 on July 25, 2025, to 0.96 currently. Analysts say the current setup mirrors that seen during the September 2021 to May 2022 period, when the SOPR for XRP fell into the <1 range. A prolonged consolidation followed the plunge, leading to stabilization.
XRP Holders Realize Huge Losses
Since August 2025, the price of XRP has been in a steady decline, recovering only briefly before resuming its descent. By late October, the price had dropped 27% from $3.5 in mid-July to $2.4. As the asset lost its value, long-term holders who had accumulated before November 2024 increased their spending by 580% from $38 million per day to $260 million per day.
The numbers remained steady into early November, highlighting a distribution into weakness, not strength. Analysts noted that the spending spree was unlike past profit-realization waves that aligned with rallies. There was a clear signal that experienced traders were exiting their positions, adding pressure to the price of XRP.
By mid-November, the share of XRP supply in profit had plummeted to 58.5%, the lowest since November 2024, when the asset was worth $0.53. Even though XRP traded around $2.15 at the time, four times higher than the November 2024 price, more than 41% of the coin’s supply was sitting in losses. It was an indication that the market was top-heavy, structurally fragile, and dominated by late buyers.
Capitulation Signal or Structural Failure?
As the bears would have it, the price of XRP fell below $2 in mid-November, and the 30-day estimated market average (30D-EMA) of daily realized losses surged to $75 million. Since the beginning of the year, investors have realized between $500 million and $1.2 billion in losses per week each time XRP has retested $2. $2 is now a major psychological zone for XRP holders.
At the time of writing, XRP was trading at $1.40, having lost its aggregate holder cost basis, which explains the panic selling. Such moves have raised questions about whether the XRP market is in a capitulation or experiencing a structural failure. Experts insist the former is the case because fundamentals are stronger now, unlike 2022, when regulatory clarity did not exist.
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Stripe has launched a new payment system designed for artificial intelligence agents, allowing them to pay for digital services automatically using cryptocurrency.
Summary
- Stripe launched x402 payments to enable AI agents to make automated USDC transactions on Base.
- The system supports fast, low-cost micropayments for APIs, data, and compute services.
- The move shows the growing convergence between AI, fintech, and blockchain infrastructure.
Stripe product manager Jeff Weinstein revealed the feature on Feb. 11 and it is currently in preview. The update adds support for Base, an Ethereum-based blockchain network, for the x402 payment protocol.
Through this system, AI agents can quickly and easily make small payments using USD Coin (USDC) stablecoins. Developers can charge agents for services like data access, processing power, and API calls using Stripe’s built-in tools, eliminating the need for manual billing or traditional subscriptions.
Built for machine-to-machine payments
Weinstein said current payment systems are designed mainly for humans and are not well-suited for automated software. AI agents, he noted, need fast, low-cost, and always-available payment rails that can work without human supervision.
Under the new system, businesses create a standard Stripe Payment Intent. Stripe assigns a one-of-a-kind wallet address to every transaction. When the AI agent sends funds to that address, the payment can be monitored in real time through the Stripe dashboard, via webhooks, or by using the API.
Once the transaction is confirmed, the funds are deposited into the merchant’s Stripe balance, just like any standard payment. Stripe’s current infrastructure also manages tax reporting, refunds, and compliance tools.
The system relies on x402, an open protocol that revives the old HTTP “402 Payment Required” status code. When an agent tries to access a paid service, it receives a payment request. After sending USDC on Base, access is automatically granted.
Because Base offers fast settlement and low fees, payments can be completed in a matter of seconds. This makes the setup suitable for frequent, low-value transactions, such as paying per request or per minute of usage.
Stripe has also released an open-source command-line tool called “purl,” along with sample code in Python and Node.js, to help developers test machine payments.
Expanding the agent economy
The launch reflects Stripe’s growing focus on what it calls the “agent economy,” where software programs operate independently and manage their own finances. These agents are expected to buy data, computing resources, and digital services without human approval.
The company said more protocols, currencies, and blockchain networks will be added in the future. For now, support is focused on USDC on Base, which provides stability and predictable pricing.
Industry observers see the move as another sign that AI, fintech, and crypto are becoming more closely connected. Instead of relying on monthly plans or prepaid credits, services can now be priced per action, per second, or per request.
TLDR:
- Circle Ventures invests in edgeX, the team behind EDGE Chain layer-3 blockchain infrastructure
- Native USDC and CCTP integration will enable regulated stablecoin settlement on EDGE Chain
- Migration from bridged USDC.e to native USDC planned for existing EDGE Chain ecosystem users
- CCTP enables secure crosschain USDC transfers without reliance on wrapped or bridged assets
Native USDC and Circle Cross-Chain Transfer Protocol (CCTP) are set to launch on EDGE Chain, bringing regulated stablecoin infrastructure to the layer-3 blockchain ecosystem.
Circle Ventures has invested in edgeX, the team developing EDGE Chain, supporting the integration of USDC and CCTP capabilities.
The upcoming launch will enable institutional-grade settlement and crosschain transfers for users of edgeX exchange and other EDGE Chain applications.
This development positions EDGE Chain as a high-performance environment for onchain financial applications.
Circle Investment Backs EDGE Chain Infrastructure
EDGE Chain operates as a layer-3 blockchain powering edgeX, a perpetual decentralized exchange focused on competitive trading performance.
The platform leverages Arbitrum’s layer-2 chain for security while settling on Ethereum’s base layer. Circle Ventures’ investment reflects confidence in EDGE Chain’s technical architecture and growth potential.
According to the announcement, the integration “brings trusted, regulated stablecoin settlement and secure crosschain infrastructure to the EDGE ecosystem, including edgeX exchange, unlocking new onchain financial use cases.” The investment demonstrates Circle’s belief in the platform as a scalable environment for USDC-based applications.
The integration will provide users access to USDC, the world’s largest regulated stablecoin. Native USDC serves as a fully reserved asset redeemable 1:1 for US dollars.
Eligible institutional users can access Circle Mint for direct on and off-ramp services. The stablecoin will function across trading, lending, and various onchain activities within the ecosystem.
CCTP enables the secure movement of USDC between the EDGE Chain and other supported blockchains. The protocol eliminates reliance on wrapped or bridged token versions.
Developers can select between Standard Transfer and Fast Transfer options based on application requirements. This infrastructure supports cross-chain onboarding, trading, margin operations, and lending applications.
Migration Path Set for Bridged USDC Users
EDGE Chain currently supports Bridged USDC, known as USDC.e, created by Alchemy. The EDGE Chain and edgeX teams plan a gradual migration of USDC.e liquidity to native USDC.
Bridged versions will maintain clear labeling as USDC.e across block explorers, application interfaces, and technical documentation.
The announcement outlined key capabilities, noting the integration enables “Native USDC for settlement and collateral” alongside “CCTP for seamless USDC movement across supported blockchains. Users will benefit from infrastructure with “no reliance on wrapped or bridged assets” for cross-chain transfers.
Circle has released testnet USDC at address 0x7433b41C6c5e1d58D4Da99483609520255ab661B for developer experimentation. Mainnet contract addresses will be announced closer to launch.
Developers can obtain free testnet tokens through Circle’s official faucet to test fund flows and integration workflows.
The existing Bridged USDC maintains its mainnet presence at address 0xd8e20462EDCe38434616Cc6A6a560BB76B582ED8. Both token versions will coexist during the transition period.
Ecosystem applications will coordinate migration timelines to minimize disruption for existing users and liquidity providers. Circle Internet Financial, LLC holds multiple regulatory licenses for money transmission services under NMLS number 1201441.
Bitcoin’s long-standing narrative as “digital gold” is under renewed scrutiny as its price action increasingly mirrors that of higher-risk growth assets rather than serving as a traditional safe-haven harbor. Grayscale’s latest Market Byte examines this shift, arguing that the asset’s role in portfolios may be evolving in ways that reflect broader participation from institutional buyers, ETF activity, and shifting macro risk sentiment. While the research maintains that Bitcoin remains a long-term store of value due to its fixed supply and independence from central banks, it cautions that near-term behavior has diverged from gold and other precious metals, opening room for a rethinking of how the market categorizes the digital asset.
In the Grayscale analysis, the first-time reader-facing takeaway is that Bitcoin’s short-term price movements have not tracked gold’s recent rallies. The report notes that bullion and silver have surged to records even as Bitcoin has swooned, suggesting a decoupling from traditional safe-haven dynamics. Instead, Bitcoin’s price action has shown strong correlations with software equities, particularly since the start of 2024. That sector has faced sustained selling pressure amid fears that advances in artificial intelligence could disrupt or render many software services obsolete, amplifying concerns about growth equities’ durability in a high-rate environment.
The charted narrative—one that Grayscale emphasizes with data and context—takes on added significance as the asset has logged a roughly 50% drawdown from its October peak that exceeded $126,000. The drawdown has unfolded in a string of waves, beginning with a historically large liquidation in October 2025, followed by renewed selling in late November and again in late January 2026. Grayscale highlights that persistent price discounts on major trading venues such as Coinbase reflect a broader selling impulse among U.S. participants, including “motivated” sellers who have contributed to the softer price dynamics in recent weeks. This backdrop is shaping a narrative in which Bitcoin’s path is increasingly tethered to the health of growth-oriented equities and the liquidity environment around ETFs and other traditional investment vehicles.
The Grayscale report frames these developments as part of Bitcoin’s ongoing evolution rather than a sudden policy failure of the asset’s core investment premise. Zach Pandl, the report’s author, notes that it would have been unrealistic to expect Bitcoin to supplant gold as a monetary asset in a short period of time. Gold’s long history as a monetary anchor—“used as money for thousands of years and serving as the backbone of the international monetary system until the early 1970s”—shadows Bitcoin’s current trajectory, but the author suggests that the digital asset could still contribute to monetary functions over time as the global economy digitizes further through AI, autonomous agents, and tokenized financial markets.
In broader market terms, the evolution described by Grayscale aligns with a trend toward deeper integration of digital assets into established financial markets. Institutional participation, ETF activity, and shifting risk sentiment are cited as key drivers behind Bitcoin’s greater sensitivity to equities and growth assets. The near-term outlook, therefore, hinges on the possibility of fresh capital reentering the market—whether through renewed inflows into Bitcoin-related exchange-traded products or renewed retail interest. Market watchers note that while AI-focused narratives have dominated sentiment in the meantime, a continuation of liquidity inflows could catalyze a partial rebound for crypto assets as macro conditions stabilize.
Despite the near-term softness, the report underscores a longer-term perspective. While Bitcoin’s monetary status remains a work in progress, its potential to assume a more prominent role in digital-first economies could intensify as tokenization of assets and on-chain finance expand. The analysis highlights that the ongoing transition toward tokenized markets, together with the growth of on-chain infrastructure for tokenized assets, might help Bitcoin solidify a more enduring store-of-value or medium-of-exchange function over time—even if such a shift does not materialize immediately.
From a practical standpoint, the near-term recovery hinges on capital inflows. Grayscale notes that ETF activity could serve as a meaningful catalyst should fresh inflows reappear, while retail participation—currently concentrated in AI and growth-driven equities—would need to broaden to crypto assets for a more robust upside. The research also points to ongoing market structure dynamics, including price discovery processes on major exchanges and the degree to which price gaps on venues like Coinbase reflect broader demand gaps in the crypto space. Taken together, these factors suggest Bitcoin’s path remains highly sensitive to macro risk appetite, regulatory signals, and the ebb and flow of liquidity across traditional and digital markets.
Key takeaways
- Bitcoin’s price action has shown stronger ties to growth equities, particularly software stocks, since early 2024, rather than mirroring traditional safe-haven assets like gold.
- The asset has experienced a ~50% drawdown from its October peak above $126,000, with declines unfolding in multiple waves including a major liquidation event in October 2025.
- Grayscale attributes some of the recent volatility to “motivated US sellers” and persistent price discounts on Coinbase, signaling liquidity and demand dynamics within the U.S. market.
- Institutional participation, ETF activity, and shifting macro risk sentiment are cited as factors intensifying Bitcoin’s sensitivity to the broader market environment.
- Although Bitcoin has not displaced gold as a monetary asset, its role could evolve as digital markets grow and tokenized financial systems mature.
Tickers mentioned: $BTC
Price impact: Negative. Bitcoin retraced about half of its October highs, underscoring a softer near-term price backdrop tied to risk-on selling and ETF flow dynamics.
Market context: The landscape for digital assets in 2026 is increasingly shaped by ETF inflows, institutional adoption, and a broader appetite for growth-centric equities, which can both buoy and dampen crypto markets depending on macro liquidity and risk sentiment.
Why it matters
The evolving relationship between Bitcoin and traditional financial assets matters for investors rethinking diversification in a digitizing economy. The Grayscale analysis indicates that Bitcoin remains a long-term store of value by design—its fixed supply and independence from central banking authorities still underpin its investment thesis—but the near-term price behavior reveals an asset whose risk profile is closely tied to broader market cycles. For institutions, the finding that Bitcoin correlates with growth equities adds nuance to portfolio construction, suggesting that crypto exposure may be most effective when paired with assets that can withstand higher interest-rate regimes or leveraged liquidity conditions.
From a market-building perspective, the evolution toward deeper integration with traditional finance could spur further product innovation and regulatory clarity. In a world where tokenized markets and AI-driven economies become more pervasive, Bitcoin’s potential to serve as a digital monetary component—though not guaranteed—could gain new relevance as investors seek hedges against macro uncertainties or asymmetric risk exposures. The Grayscale report highlights these dynamics without overselling the pace or inevitability of such a transition, anchoring expectations in observable market structures, ETF activity, and the behavior of major on-ramps like Coinbase.
What to watch next
- Monitor ETF inflows into Bitcoin-linked funds in the coming quarters to gauge potential liquidity-driven support.
- Track retail participation in crypto amid any renewed appetite for high-growth narratives and AI-related themes.
- Observe price action around major exchange on-ramps (e.g., Coinbase) for signs of demand normalization or persistent discounts.
- Watch for shifts in broader risk sentiment that could re-anchor Bitcoin’s correlations with growth equities rather than traditional safe havens.
- Assess regulation and institutional adoption milestones that might alter the pace of Bitcoin’s integration into mainstream portfolios.
Sources & verification
- Grayscale Market Byte on Bitcoin trading more like growth than gold, including references to Bitcoin’s correlation with software equities and macro risk sentiment.
- Historical price context, including the October 2025 liquidation event and subsequent selloffs in November 2025 and January 2026.
- Notes on price discounts at Coinbase and the role of U.S. sellers in recent weeks.
- Statements and framing around Bitcoin’s potential future monetary role amid digitalization and tokenized markets.
Bitcoin’s evolving role amid market dynamics
Bitcoin (CRYPTO: BTC) is navigating a shifting nexus where its core value proposition as a fixed-supply asset intersects with the realities of an increasingly liquid and regulated financial system. Grayscale’s analysis is careful to separate near-term price dynamics from the longer-term investment thesis. While the data show that Bitcoin has not yet displaced gold as a monetary anchor, the asset’s growing integration with institutional channels and exchange-traded products could, over time, reframe its place in diversified portfolios. The near-term backdrop remains a test of liquidity, risk appetite, and the willingness of capital to flow back into crypto as macro conditions evolve.
As markets digest these observations, industry participants will be watching whether Bitcoin can regain momentum through renewed ETF inflows or a revival of retail interest outside of AI and growth narratives. The coming months will reveal whether the current trend toward growth-equity sensitivity is a temporary anomaly or a signal of a deeper, structural revaluation of how crypto assets fit into a digitized, AI-enhanced financial ecosystem.
Ultimately, the conversation centers on duration and resilience: can Bitcoin sustain a longer-term store-of-value narrative while also fulfilling a functional role in a fast-evolving financial architecture? The Grayscale report suggests that both outcomes are possible, contingent on liquidity, regulatory clarity, and the pace at which tokenized finance expands beyond niche markets into mainstream capital allocations. The road ahead will require careful monitoring of price action, investor flow, and the health of risk markets—the triad that increasingly determines whether Bitcoin remains a sanctuary or a sophisticated, dynamic component of diversified portfolios.
The Dow was struggling to hold onto gains in Monday trading.
After opening lower, then rallying to an intraday record of 50,219.40, the Dow was back down 29 points, or 0.1%.
The S&P 500 was up 0.5%, with artificial intelligence and riskier stocks leading the index. The Nasdaq Composite was up 0.9%. The S&P 500 and Nasdaq are on pace for their best two-day stretch since November, according to Dow Jones Market Data.
Crypto World
Robinhood Q4 2025 Earnings Miss Revenue Targets as Crypto Trading Revenue Drops 38% Year-Over-Year
TLDR:
- Robinhood reported Q4 revenue of $1.28 billion, missing Wall Street’s $1.35 billion estimate by 5.2%
- Crypto revenue declined 38% year-over-year to $221 million while options revenue surged 41% to $314 million
- Gold subscribers reached 4.2 million users, up 58% year-over-year, driving premium service adoption
- Company deployed $653 million in share buybacks during 2025, repurchasing 12 million shares at $54.30 average
Robinhood Q4 2025 earnings revealed mixed results as the trading platform reported revenue of $1.28 billion, falling short of Wall Street’s $1.35 billion estimate.
The company posted adjusted EBITDA of $761 million, missing analyst expectations of $833 million, while net income reached $605 million.
Transaction-based revenue totaled $776 million, marking a 15% year-over-year increase but trailing the estimated $791.6 million. Earnings per share of $0.66 beat the $0.63 estimate.
Revenue Streams Show Divergent Performance Trends
The platform’s crypto trading segment experienced a notable decline during the quarter. Crypto revenue dropped 38% year-over-year to $221 million, missing the $242 million estimate.
This contraction came as digital asset trading volumes moderated from previous periods. Meanwhile, options revenue surged 41% to $314 million, demonstrating continued retail investor appetite for derivatives trading.
Equities revenue climbed 54% to $94 million, reflecting increased stock trading activity among users. Net interest revenue grew 39% to $411 million, benefiting from higher interest rates and expanded lending operations.
Other revenue streams jumped 109% to $96 million, driven by diversified product offerings beyond core trading services.
Total revenue grew 27% year-over-year despite the crypto segment’s weakness. Transaction-based revenue represented the largest component at $776 million.
Wall St Engine shared detailed metrics through their platform, noting the variance between actual and estimated results across multiple categories.
Operating expenses rose 38% year-over-year to $633 million, outpacing revenue growth. Adjusted operating expenses including stock-based compensation reached $597 million, up 18% from the prior year.
The expense increase reflected continued investment in platform infrastructure and regulatory compliance costs.
User Metrics and Capital Allocation Strategy
Funded customers reached 27.0 million, representing 7% year-over-year growth. Investment accounts totaled 28.4 million, an 8% increase from the previous year.
Gold subscribers, the platform’s premium tier, hit 4.2 million, surging 58% year-over-year as users sought enhanced features and benefits.
Total platform assets under management reached $324 billion, jumping 68% year-over-year. Average revenue per user stood at $191, climbing 16% compared to the prior year.
Net deposits totaled $15.9 billion for the quarter, with trailing twelve-month deposits reaching $68.1 billion.
The company maintained its cash position at $4.3 billion in cash and cash equivalents. Share buybacks continued during the quarter, with $100 million deployed to repurchase 0.8 million shares at an average price of $119.86. Full-year 2025 buybacks totaled $653 million, retiring 12 million shares at an average price of $54.30.
Management addressed the quarter’s results and long-term strategy in their earnings commentary. According to company executives, “Our vision hasn’t changed: we are building the Financial SuperApp.”
The leadership team reflected on the annual performance, stating that “2025 was a record year where we set new highs for net deposits, Gold Subscribers, trading volumes, revenues, and profits, and we closed the year with a strong Q4.”
Tether has deepened its push into blockchain infrastructure with a new strategic investment in LayerZero Labs, the company behind one of the crypto industry’s most widely used interoperability protocols.
Summary
- Tether Investments backed LayerZero to support blockchain interoperability.
- USDt0 has processed over $70 billion in cross-chain transfers in under a year.
- The partnership supports payments, custody tools, and AI-driven finance systems.
The deal, announced on Feb. 10, reflects Tether’s growing focus on building the technical foundations needed for stablecoins and tokenized assets to move smoothly across different blockchains.
Financial terms of the investment were not disclosed. LayerZero (ZRO) builds technologies that allow data and tokens to flow safely between blockchains without the need for centralized middlemen.
Strengthening Cross-Chain Infrastructure
Several major projects are currently supported by its interoperability framework, which has gained widespread adoption in the cryptocurrency sector.
LayerZero’s support for USDt0, Tether’s omnichain version of USDT, and XAUt0, a digital asset backed by gold, are at the heart of the collaboration. Its Omnichain Fungible Token standard serves as the foundation for both tokens.
This framework prevents the fragmentation that often occurs in cross-chain transfers by enabling assets to flow seamlessly across multiple blockchain networks while preserving unified liquidity.
In less than a year, USDt0 has enabled more than $70 billion in cross-chain transactions, according to Tether. This level of activity has been cited as evidence that large-scale interoperability can function under live market conditions.
The results have helped position LayerZero as a core infrastructure provider in the digital asset ecosystem. Tether said the performance of these systems played a major role in its decision to invest.
According to the company, interoperability is crucial for lowering market fragmentation and increasing the viability of stablecoins for international payments and settlements. It holds that more efficient and seamless transactions can result from improved network connectivity.
Expanding Into Payments and Agentic Finance
To support this goal, Tether plans to integrate LayerZero’s infrastructure into its Wallet Development Kit. This kit helps developers build tools for payments, custody, and settlements, making it easier to create real-world financial applications.
Paolo Ardoino, Tether’s chief executive, said the company focuses on investing in platforms that already demonstrate real-world utility. He described LayerZero’s technology as a foundational layer that allows digital assets to move in real time between networks.
The investment is also tied to Tether’s interest in “agentic finance,” where artificial intelligence systems manage wallets and execute transactions independently. As automated payments and micropayments continue to grow, reliable cross-chain infrastructure is seen as increasingly important.
LayerZero chief executive Bryan Pellegrino said the success of USDt0 helped validate the company’s approach. He added that deeper collaboration with Tether would support the development of open and permissionless financial systems.
Robinhood has launched a public testnet for Robinhood Chain, its upcoming Ethereum layer-2 network designed to bring tokenized real-world and digital assets onto the blockchain. The testnet is now open to developers and offers access points, documentation, and compatibility with standard Ethereum development tools, along with early integrations from infrastructure partners. The project emphasizes “financial-grade” use cases, including 24/7 trading, seamless bridging, self-custody, and decentralized products such as tokenized asset platforms, lending markets, and perpetual futures exchanges. A mainnet launch is planned for later this year, with testnet-only assets such as stock-style tokens and tighter integration with Robinhood Wallet anticipated in the coming months.
Ethereum (CRYPTO: ETH) is at the center of Robinhood Chain, which draws on Arbitrum-style technology to scale and secure on-chain interactions around tokenized assets. In the announcement, Robinhood frames the testnet as laying the groundwork for an ecosystem that could redefine access to tokenized real-world assets and unlock deeper liquidity within the Ethereum ecosystem. The release notes that developers will be able to build and test decentralized applications that interact with on-chain securities, commodities, and other tokenized instruments, all while leveraging the throughput benefits associated with layer-2 scaling. A dedicated documentation hub—docs.chain.robinhood.com—provides step-by-step guidance for onboarding, smart contract development, and bridging between the main chain and the testnet environment.
The broader mission, as outlined by Robinhood, is to move beyond a simple exchange app that supports crypto trading to an on-chain infrastructure that can host a range of tokenized real-world assets. This shift builds on the company’s earlier push to tokenize a substantial slice of traditional markets, including nearly 500 United States stocks and exchange-traded funds (ETFs) on Arbitrum as part of a broader real-world asset strategy. In practical terms, tokenized stocks and other asset types could offer near real-time settlement, programmability, and new liquidity venues that hinge on the security and efficiency of blockchain settlement. The testnet will serve as a proving ground for these ideas, with the expectation that some features, such as tighter integration with the Robinhood Wallet, will transition to mainnet in the months ahead.
Robinhood’s leadership has framed the project as part of a broader trend in which centralized exchanges pursue end-to-end control over both the user experience and the on-chain rails that enable trading and custody. In parallel, Coinbase has been pursuing its own on-chain expansion through Base, an L2 network aimed at regulated, scalable trading and the eventual rollout of tokenized equities; the company signaled it would begin tokenized equities in December 2025 as part of a broader strategy. This move aligns with the industry’s push for on-chain settlement and more fluid movement between traditional and digital asset markets.
On the other side of the market spectrum, Kraken has pursued a similar end-to-end approach. The exchange has been developing Ink, its own Optimism-based L2 network, and has signaled a pathway toward tokenized equities such as xStocks. Taken together, these initiatives reflect a sector-wide appetite for on-chain rails that can support regulated trading, custody, and real-world asset tokenization while maintaining robust compliance and risk controls.
Robinhood’s tokenization push
The testnet release underscores a continuing shift in Robinhood’s strategy from simply offering crypto trading to building and operating its own on-chain infrastructure. This explicitly ties into the company’s earlier moves to tokenize real-world assets and integrate them into a broader trading ecosystem. Beyond the testnet, the plan calls for a mainnet launch later this year, with expectations of stock‑style tokens and even deeper integration with the Robinhood Wallet as part of the rollout.
Johann Kerbrat, senior vice president and GM of Crypto and International at Robinhood, framed the testnet as a foundational step toward an ecosystem that could define the future of tokenized real‑world assets. He described the environment as a launchpad for DeFi liquidity within the Ethereum ecosystem, inviting builders to experiment with on-chain representations of traditional financial instruments. The announcement emphasizes that the testnet is designed to support “financial-grade” use cases, including 24/7 trading and cross-chain bridging, while preserving user custody and security.
As the industry moves toward more comprehensive on-chain rails, tokenized assets are increasingly viewed as a way to reduce settlement times and unlock new liquidity pools. The Robinhood Chain testnet embodies this ambition by offering a sandbox where developers can test tokenized securities and other asset types, ensuring that the underlying rails and tooling can withstand real-market stress, while integrating with existing Ethereum tooling and infrastructure. The initiative also participates in a broader narrative about regulated, practitioner-friendly deployments of decentralized finance on established networks.
Historically, Robinhood has faced regulatory scrutiny and public criticism related to outages during periods of market stress and questions about the company’s use of payment for order flow in equities. The company’s leadership has argued that tokenized stocks could help prevent trading freezes by enabling real-time settlement on-chain. Whether the testnet and subsequent mainnet deployment will meaningfully mitigate past concerns remains a topic of ongoing scrutiny among regulators and market participants.
What to watch next
- Mainnet launch in the latter part of the year, with a clear roadmap for introducing stock-style tokens on Robinhood Chain.
- Expansion of testnet assets beyond basic tokenized instruments, including tighter integration with Robinhood Wallet and enhanced developer tooling.
- Continued activity from peer exchanges pursuing on-chain rails and tokenized equities, such as Base (Coinbase) and Ink (Kraken), and how these ecosystems interact with the broader DeFi liquidity landscape.
- Regulatory clarity and potential oversight around on-chain tokenized securities and cross-border custody arrangements as these platforms move from testnet to mainnet.
Sources & verification
- Official Robinhood release outlining the Robinhood Chain testnet, its documentation hub, and the roadmap for 24/7 trading, bridging, and self-custody.
- Statement from Johann Kerbrat on the testnet’s role in enabling a future tokenized real-world assets ecosystem.
- Coinbase coverage of stock trading and prediction markets as part of its broader “everything app” strategy and tokenized equities rollout.
- Kraken coverage of Ink, its Optimism-based L2, and the xStocks tokenization initiative as part of an end-to-end approach to on-chain markets.
- Historical context on Robinhood’s tokenization efforts, including the tokenization of nearly 500 US stocks and ETFs on Arbitrum.
Why it matters
The Robinhood Chain testnet marks a pivotal step in the ongoing transition of traditional financial assets to on-chain representations. By coupling Ethereum‑level security with layer-2 scalability and tokenized instruments, Robinhood aims to provide a more predictable and programmable framework for on-chain asset trading. If mainnet deployment succeeds, developers could build decentralized markets that mirror or improve upon real-world asset trading, with potential benefits such as faster settlement, improved liquidity, and enhanced transparency.
From a market perspective, the initiative contributes to a broader trend of regulated, infrastructure-focused expansion by mainstream financial incumbents into the Web3 and DeFi space. The convergence of wallet-centric custody, tokenized securities, and cross-chain interoperability could influence how liquidity flows between centralized exchanges and decentralized venues, potentially shaping user experience and capital flows for years to come. At the same time, observers will be watching how these platforms address risk controls, regulatory expectations, and incident response given Robinhood’s historical outages and public scrutiny.
Market context
As the crypto and digital asset ecosystem matures, more traditional platforms are experimenting with on-chain rails to support tokenized real-world assets. The Robinhood Chain testnet fits into a wider pattern of exchanges grafting on-chain capabilities to support regulated activity while offering developers a sandbox to refine interoperability with Ethereum-based tooling. The deployment—spanning testnets, mainnet timelines, and collaborations with wallet ecosystems—illustrates a broader industry shift toward programmable, real-time settlement mechanisms and the integration of traditional markets with decentralized infrastructure.
What to watch next
- Mainnet timing and any delays or accelerations announced by Robinhood for Robinhood Chain.
- Progress on stock-style tokens becoming live on the mainnet and any regulatory disclosures tied to those assets.
- Enhanced interoperability between Robinhood Wallet and other DeFi layers or bridges, including potential cross-chain use cases.
Tickers mentioned: $ETH, $COIN
Market context: The launch is part of a broader movement toward on-chain rails for regulated assets and DeFi liquidity on Ethereum-layer-2s.
What to watch next: Mainnet timing, broader tokenized-asset rollout, and wallet-chain integrations will shape the near-term trajectory of Robinhood Chain and related ecosystems.
Robinhood’s latest earnings narrative paints a bifurcated picture: the platform’s overall revenue grew, but the crypto segment continued to grapple with a broader market downturn. In the fourth quarter of 2025, the trading platform reported net revenues of $1.28 billion, up 27% year over year yet beneath Wall Street consensus of about $1.34 billion. Crypto revenues declined sharply, falling 38% year over year to $221 million as digital asset markets cooled after the October downturn. On the bottom line, the company posted net income of $605 million and earnings per share of $0.66, modestly topping expectations of $0.63. For the full year, Robinhood tallied a record $4.5 billion in net revenues and $1.9 billion in net income, marking increases of 52% and 35%, respectively.
Key takeaways
- Q4 net revenues came in at $1.28 billion, missing the approximately $1.34 billion expected by analysts, even as the company delivered a 27% YoY increase.
- Crypto revenues dropped to $221 million in Q4, a 38% year-over-year decline amid a bearish tilt in crypto markets that accelerated in October.
- Notional crypto volumes across Robinhood’s app and its wholly owned exchange Bitstamp rose 3% QoQ to a record $82.4 billion, underscoring ongoing user engagement in crypto activity despite revenue softness.
- Equity trading volumes grew more robustly in the quarter, up 10% QoQ to $710 billion, with options trading up 8% to 659 million contracts, highlighting diversification away from crypto into traditional assets.
- Robinhood’s “other” transaction-based revenues — including its prediction markets and futures — surged to a quarterly record of $147 million, rising 375% year over year and surpassing equity trading revenues for the first time.
- Shares in Robinhood (HOOD) fell in after-hours trading, down 7.66% to $79.04 after closing the regular session at $85.60, continuing a drawdown that has left the stock well below its October 2023 peak.
Tickers mentioned: $HOOD
Sentiment: Neutral
Price impact: Negative. The stock moved lower in after-hours trading following the earnings release, reflecting investor disappointment with crypto revenues and the quarterly miss on consensus estimates.
Market context: The results come as a broader retail and crypto market backdrop remains fragile, with liquidity and risk appetite shifting as investors reassess the potential for mainstream adoption of crypto products within a unified “Financial SuperApp” strategy.
Why it matters
The quarterly numbers illustrate how Robinhood is trying to diversify beyond its origins as a stock-trading app. While the core platform posted a respectable top-line increase, the crypto business—once a high-growth driver—hit a wobble as the crypto cycle cooled. This divergence underscores a broader industry trend: even as retail interest in crypto persists, revenue generation from digital assets remains highly sensitive to price action and market sentiment. For a company positioning itself as a one-stop financial interface, crypto volatility adds a layer of risk to the pace and scale of user monetization.
At the same time, Robinhood’s willingness to lean into non-traditional revenue sources is evident. The quarterly ascent of “other” transaction-based revenues to $147 million, a 375% year-over-year climb, marked a watershed moment where prediction markets and futures began to outpace traditional equity trading revenues. The platform’s bet on event contracts, launched in partnership with Kalshi in March last year, appears to be paying off as traders seek derivatives tied to real-world outcomes. This diversification aligns with the company’s stated ambition to become a holistic Financial SuperApp, a longer-term thesis that hinges on expanding monetization across asset classes and product types.
From an investor perspective, the earnings mix highlights both opportunity and risk. The after-hours stock swing reflects heightened sensitivity to crypto headlines and quarterly revenue gaps. Yet, management’s ability to deliver record annual revenues and grow net income suggests a resilient operating model, buoyed by a mix of crypto exposure, growing volumes in traditional markets, and the rapid acceleration of ancillary products like prediction markets. The “Financial SuperApp” narrative remains intact, but the path to scale will likely depend on continuing to attract and retain a broad user base while extracting incremental margin from new product lines.
CEO Vlad Tenev reiterated a strategic thread that has persisted through earnings cycles: the company is relentlessly building out its suite of financial services to deepen user engagement and lifetime value. In the statement, he emphasized that “our vision hasn’t changed: we are building the Financial SuperApp.” That framing, if realized, could help Robinhood weather episodic crypto downturns by yielding a more stable and diversified revenue stream across products and geographies.
What to watch next
- Next-quarter commentary on crypto revenue resilience: whether price action and user activity stabilize enough to revive crypto-related monetization.
- Progress updates on the “Financial SuperApp” initiative, including product rollouts, cross-product usage metrics, and international expansion signals.
- Regulatory developments affecting crypto trading and prediction markets, especially around consumer protections and platform liability.
- Quarterly trends in notional crypto volumes versus other product categories to gauge ongoing demand shifts from crypto to traditional assets and derivative markets.
- Follow-up on Kalshi partnership outcomes and the elasticity of revenue from event-based contracts as mainstream retail adoption evolves.
Sources & verification
- Robinhood Reports Fourth Quarter and Full Year 2025 Results — official press release
- Zacks coverage comparing results to Wall Street estimates
- Bitstamp and Robinhood crypto trading volume context and quarterly notional volumes
- Robinhood launches betting markets hub with Kalshi — coverage of the prediction markets initiative
Robinhood earnings reveal crypto headwinds amid broader revenue growth
Robinhood (EXCHANGE: HOOD) reported mixed fourth-quarter results as the platform continues to diversify beyond its core trading app into crypto services and other revenue streams. In Q4 2025, the company tallied net revenues of $1.28 billion, a 27% year-over-year increase but below Wall Street consensus of roughly $1.34 billion. Crypto revenues declined sharply, falling 38% year over year to $221 million as digital asset markets cooled after the October downturn. On the bottom line, the company posted net income of $605 million and earnings per share of $0.66, modestly topping expectations of $0.63. For the full year, Robinhood tallied a record $4.5 billion in net revenues and $1.9 billion in net income, marking increases of 52% and 35%, respectively.
Notional crypto volumes across the app and its exchange Bitstamp rose 3% quarter-on-quarter to a record $82.4 billion in Q4, underscoring continued user engagement in digital assets despite soft revenue figures. By comparison, traditional equities activity remained stronger, with equity trade volumes up 10% QoQ to $710 billion and options trading rising 8% to 659 million contracts. The company’s foray into event-based contracts also bore fruit in the quarter, as Kalshi-backed prediction markets helped lift overall revenue from “other” transaction-based streams to a quarterly record of $147 million, up 375% year over year and surpassing the revenue generated from equity trades for the first time.
The quarterly narrative sits within a broader strategy to expand Robinhood’s product suite beyond stock and crypto trading. The company emphasized that the growth of prediction markets and futures was not a one-off spike but part of a deliberate pivot toward higher-margin, diversified revenue streams. While the crypto segment faced headwinds, the strength of non-traditional product lines suggests a path to resilience if demand for these instruments remains robust and regulators maintain a stable environment for retail access to alternatives.
Chairman and CEO Vlad Tenev framed the results within the larger ambition of building a comprehensive financial platform. “Our vision hasn’t changed: we are building the Financial SuperApp,” he said, highlighting that the business model is designed to leverage cross-product engagement and monetization across multiple asset classes. The market reaction to the earnings release reflects a cautious stance: investors weighed the crypto softness against the strength of other lines and the long-term potential of a broader platform ecosystem.
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